One note: It appears that starting when the content and minerals requirement goes into effect that it will be split into two parts. If the battery content meets muster you get $3,750 and another $3,750 for the minerals but the rules around this have yet to be written. How Vinfast will be treated we don't know. They plan on building EVs in the USA but you'll have to lease the battery and based on how the law seems to be written that would mean that the vehicle, even when purchased, would not get the tax credt unless you were also allowed to buy the battery,
@StevennnLAX
2 жыл бұрын
It also said that a binding contract must be made after 8/16/2022 to qualify for the new tax credit, so I am wondering the Tesla order agreement will be considered a binding contract or not?
@EVBuyersGuide
2 жыл бұрын
@@StevennnLAX From the guidance provided by the IRS it would also require a non refundable deposit and the IRS prefers that that deposit is 5% or more of the purchase price,.
@nc3826
2 жыл бұрын
@@EVBuyersGuide thanks for adding that but you could have just pinned my comment ;) correction. the IRS states starting in 2023 there will be two 2 tax credits for new clean vehicles of $3,750 , not just one of $7,500, based on battery criteria....
@JohnnyCarly
2 жыл бұрын
@@EVBuyersGuide A CNN article reads that you had to take delivery before Jan 1 to qualify? If you have a binding contract, does anyone know if there is a rule that you actually need to take delivery before Jan 1?
@StevennnLAX
2 жыл бұрын
@@EVBuyersGuide 5% deposit? I ordered the Tesla model Y, and they only charge $200 to order.
@user-js3ee5qv6g
Жыл бұрын
THANK YOU for such a clear concise explanation of how we get the credit. I have been asking my accountant, car dealers, watching you tube just to find out if I will be be refunded only the tax credit amount I would owe at yr end or is it based on ALL the taxes I already paid through the year. You are the ONLY ONE who explained everything we need to know👍🏽
@MaskedMammal
Жыл бұрын
I didn't realize 2024 would open the door to the credits applying directly to the car sales. That's a pretty big deal, since (as you explained) you have to have at least a $7500 federal tax burden in the same year you bought the car otherwise, to get the full credit, and even then, that's if you don't qualify for anything else that year. Weirdly, the incentive working only as a tax credit makes it less useful to the people who probably need it most to justify buying an EV instead of an ICE.
@MJ-zo5gb
Жыл бұрын
I’ve been trying to get some clarity on this. Even though it’s a point of sale, it may be tied to your taxes. Meaning you get 7500 off at point of sale and the dealer gets 7500 from the government but at tax time if you don’t have the 7500 in liability, do you have to make pay up then? I’m not sure this has been clarified yet.
@MaskedMammal
Жыл бұрын
@@MJ-zo5gb The way I understood it was, you're just passing the tax credit on to the dealer you're buying the car from. Their tax burden is likely to be high enough they can take a lot of these before needing to cut off the discount. Presumably the only thing that reflects on your own taxes is the inability to pick up any other EV purchase tax credit for yourself that year - you're passing that on to another entity. I'm not sure how else it could work, TBH. If my tax burden is only $2000, that's how much the credit might get me at the end of the year... but my taxes won't be completed until a couple months into next year so it wouldn't be possible to determine my tax liability for the coming year at point of sale. Maybe they could try to calculate what it's expected to be, but that seems like a lot of work for something that ultimately would be easier to just claim yourself. There may be some relation to how the tax credit affects a lease. I'm not one to lease a car so I haven't looked into it but from what I've heard it sounds similar in that the credit doesn't go to your own taxes but instead gets passed to the dealer who can then put a discount on the lease payments.
@MJ-zo5gb
Жыл бұрын
@@MaskedMammal I understand what you’re saying. Right now the rebate is limited to people that have over 7500 tax liability and people under the maximum income requirements. So in 2024 people with no tax liability can get the full 7500 and people who make more than the current limits on income can also get it? No restrictions? I wonder if this is how it will work out. Government would be basically giving poorer people who pay no federal taxes $7500 and also giving $7500 to people that are rich. Honestly, the government probably doesn’t even know what it’s going to do yet.
@palakaman
2 жыл бұрын
It's pretty crazy. We got our Santa Fe PHEV last month. Had we waited we couldn't have gotten the rebate. They're going to have a tough time moving the PHEVs now. I wonder if the market adjustments they're asking for them (some were as high as $15k over msrp) are going to go away and you can haggle more when looking to buy one.
@FuncleChuck
2 жыл бұрын
The demand will be there but they will need to drop some of the added-Dealer-theft to keep the days on lot the same
@nc3826
2 жыл бұрын
going to great times for PHEVs built in North America since they will get the full tax credit
@kodoq88
2 жыл бұрын
I would say or do (if I'm the dealer) they will see how the demand going to be like. It looks like they will need to make some adjustments on it. But again, there are people willing to pay unneeded extras just because they want the vehicle so bad.
@jeffbrooker5183
2 жыл бұрын
Thank you Alex, that's the best break down I've heard to date with how the new law works. I'm glad to hear that other American auto manufacturers will be eligible again.
@natenoneya6773
2 жыл бұрын
This was very precise and extremely useful. It will make all the difference in my choice of EV's. Hopefully you will maintain a list of qualified EV's and their battery qualifying status. I am not pleased that the tax credit is not able to be carried forward at least a few years.
@R56Cooper
2 жыл бұрын
Thank you for keeping up up to date regarding this Alex! Sharing with others now--
@josephpryor7804
2 жыл бұрын
Thanks Alex, great video! You mention that an EV binding contract signed between August 16 and December 31, 2022 will qualify for the tax credit based on the old requirements, even if delivered in 2023, as long as final assembly was in North America. Can you let us know where you obtained this info? I can't seem to find it anywhere.
@uwmalcolm491
Жыл бұрын
I would like to see this as well. I haven't found anything online. I'm also wondering if the tax credit would be applied to your 2022 or 2023 taxes considering that the delivery of the vehicle and official commitment to the entire purchase is being made in 2023?
@normt430
2 жыл бұрын
The Honda and Acura models based on GM Ultium EV battery platform will qualify as batteries will be made one of four U.S. battery plants.
@YaroslavTerletskyy
Жыл бұрын
I recently bought a used salvaged 2021 Tesla for less than $25k. I hope to benefit from the used EV tax credit. However the car dealer doesn’t know much about it. What is required on dealer’s part to do for my purchase to qualify? Any IRS forms to fill out right after the sale? A copy of the dealer’s license and their tax ID? A written binding contract or is a bill of sale enough? Please help to clarify this situation. Thank you!
@theSHale
2 жыл бұрын
I converted my reservation deposit for a Vinfast VF8 to a contract. They say it should qualify for the tax credit under the old setup. Yes? the good news, even it doesn't Vinfast says they will give a $7500 rebate or reduced price.
@tjs114
2 жыл бұрын
Vinfast never qualified because they haven't delivered a vehicle so they will be held to the August 16th regulation; so assembled in North America to qualify for anything. The Vinfast battery lease program would also work against them because the government could say you aren't really buying an electric vehicle because you don't own the battery.
@theSHale
2 жыл бұрын
@@tjs114 don't believe that is correct, nor does Vinfast. Contracts signed prior to bill signing are eligible for the credit under the 'old' law.
@berthogendoorn2133
2 жыл бұрын
if I recall China currently has the LFP Patents and The LFP patents are due to expire in 2022 so LFP which have very readily available inexpensive materials could be moved to N. America.
@tjs114
2 жыл бұрын
The LiFePo battery technology patent is owned by LiFePO4+C AG, a consortium of Hydro Quebec, Johnson Matthey, University of Montreal and CNRS. They somehow were able to lay claim to John Goodenough's Lithium Ion development work that was modified to include Iron Phosphate by people at University of Texas, Austin and MIT. The reason it seemed to be 'owned' by China is because CNRS gave them a no-fee license, but that expires December 31, 2022.
@jimmyf.x.9526
Жыл бұрын
You just answered so many of my questions I have been searching for online, especially about leasing. Thanks!
@torocars9227
2 жыл бұрын
New Orders of 2023 VW ID 4 model year from America are being produced in USA. There last batch orders of 2022s are being shipped from Germany next few months.
@idonotcarenow
2 жыл бұрын
Don’t buy one of the last remaining 2022’s. Just ordered a 2023, or if dealerships/VW give you a $7500 incentive off the MSRP, buy it 😁
@ATH_Berkshire
2 жыл бұрын
@@idonotcarenow Odds on the last of the made in Germany ID4’s will end up as dealer stock. In the current EV market they will be able to sell them no incentive but immediate delivery without to much trouble.
@idonotcarenow
2 жыл бұрын
@@ATH_Berkshire I’m not sure, the car market has definitely cooled in CA, you can negotiate all dealer markups to 0 in SoCal.
@Unbox-me
2 жыл бұрын
Alex can you do a video about what's the best EV range to get for your money that takes full advantage of the $7500 tax credit moving forward?? No one has done a video on this.
@EVBuyersGuide
2 жыл бұрын
It'll probably be a Bolt or Model 3/Y come January.
@nc3826
2 жыл бұрын
only using range/price.... how could Model 3/Y or any other US marketed EV beat the Bolt for value?
@pete0078
2 жыл бұрын
@@EVBuyersGuide How about your best pick before 1/1/23 for both income cap qualifier and non qualifiers
@pnketia
2 жыл бұрын
This was very informative and cleared up some confusion I had about the credits. Thank you!
@frankcoffey
Жыл бұрын
Some automakers are complaining about this as if the credit was for them, it is not. The only way automakers or dealers can get any of that money is to raise the price of the car but if you raise it too much it no longer qualifies so it's just a window. The other issue is income limits. If the buyer makes more than the cap the credit is off the table. So if you raise the price of the car those buyers are paying more than buyers who do qualify. So do dealerships plan on doing income based pricing? That's going to cause a stink immediately. Lots of catch 22s in this thing. Also, if a non qualifying buyer buys a qualifying car that will waste a qualifying car that could have attracted a lower income buyer. Are they going to refuse to sell qualifying cars to upper income people? My point for automakers is 1. The credits don't belong to you, they are for the buyer. 2. Automakers/Dealers won't get 100% of them because even if the car qualifies if the buyer does not.
@fazalkmd
Жыл бұрын
This is an important point that consumers have to fight for.
@loriallen67
2 жыл бұрын
I’m feeling brilliant for purchasing last year. I got the full $7500 credit. Whew.
@idonotcarenow
2 жыл бұрын
That’s hopefully if you didn’t get killed by the dealer price markups. If you bought at or under MSRP, you’re a rockstar!
@loriallen67
2 жыл бұрын
@@idonotcarenow MSRP
@bulkmailbullseye70
2 жыл бұрын
Has anyone heard of a 6000 or 8000 lb. curb weight maximum for the federal credits?
@wleacock76
2 жыл бұрын
The BMW X5 45e PHEV starts in the mid $60k, but options can easily push it over $80k. Are the options counted against the $80k ceiling? If so, a lot of people will limit their options to keep the price below the $80k threshold.
@doomsday9973
2 жыл бұрын
Yep if you option it above 80k it will not qualify. It’s MSRP including all options
@captaintomst
2 жыл бұрын
Your best bet would be to buy one that comes in below 80,000 and then add whatever options are possible after it leaves the Dealer's lot, like different wheels and tires, protection Packages Etc
@davidz7858
Жыл бұрын
$80000 should be the final price even includes shipping cost, you if you plan to add options, you need to calculate it
@preissisrightpickleball8142
Жыл бұрын
Excellent video, really helped me understand the nuance of the credit! Thank you!
@applesushi
2 жыл бұрын
This is the best breakdown of this I've seen online so far. Thank you!
@TeddyD802
2 жыл бұрын
I’m unspeakably upset about this as I’ve been waiting for an ioniq 5 since spring. This part of the changes is a kick in the pants to the middle class. Now I’m not sure if I am going to buy an EV as I don’t like the mustang or GM products. Is there any chance that during the “rule making” they would roll back the loss of tax credits until January?
@rosenkruez2
2 жыл бұрын
Unfortunately, this was the purpose of the bill. They wanted to take away the tax credit as much as they can. Thank Joe Manchin for this ridiculous bill.
@TeddyD802
2 жыл бұрын
@@rosenkruez2 yep, I’m a consumer poised to buy a car and they successfully pushed me out of an EV
@rosenkruez2
2 жыл бұрын
@@TeddyD802 Same. This bill was not designed to increase EV adoption. In fact, the goal appears to be to discourage EV adoption.
@doomsday9973
2 жыл бұрын
Manchin did not want ev credits in the first place this is all he would allow. The bill is passed there is no chance of any changes
@DonaldDickerson
2 жыл бұрын
I completely relate. Have been on multiple waitlists between me and my partner for an Ioniq 5. It's definitely a slap in the face. There's really no reason to have required vehicles to be made in the US as soon as the bill was signed. They just reduced the time of the original tax credit that would have allowed for additional EVs to have been sold. This is purposeful
@shubhang93
Жыл бұрын
@EV Buyers Guide I've a couple of questions regarding the $7500 tax credit- 1. If my tax liability is $7500 and I purchase an eligible EV in Dec'22 and happen to sell it some time next year would I be liable to an IRS credit 'recapture'? I get conflicting answers on this and I couldn't find proper info regarding this online. 2. I'm in SC, which is one of the title-holding states. Would the car be considered 'acquired' (as required by the IRS) if I'm financing the vehicle? Banks keep the title as long as you are financing with them. Thank you
@jimsmith94
2 жыл бұрын
Alex, I'm a little late watching your video, but at around 5:35 you say that binding contracts signed before December 31, 2022 and delivered in 2023 will still qualify for the requirements that existed prior to 2023. I plan to order a 2023 Ford Escape PHEV when the order banks open on September 19th. The tax credit before August 16 was $6,843 based on the battery size. As I understand it, the new credit will be the full $7,500 until the end of the year and then the battery requirements kick in. If your statement is correct, I would be eligible for the full credit if my delivery is in 2023. Every other source I've found say that delivery must be made before 2023. Can you please clarify with the source you used?
@steved1681
Жыл бұрын
The exact same question I have , right down to the same vehicle. Following
@dougf94912
Жыл бұрын
This was incredibly informative, thanks!
@briancollins-friedrichs5641
2 жыл бұрын
So helpful! Really appreciate the detail and clarity of explanation. Thank you!
@TomTheTechGuy
2 жыл бұрын
Good info Alex... with the point of sale credit, I think it will be like how they sell Solar Panels. They budget the lower cost as if they tax credit was a down payment, and you agree to pay that tax credit on the 18th payment. Wish they could start that sooner.
@DharmeshKumar
Жыл бұрын
Your slide on used EVs is incorrect. Also your mentioned that used EVs credit starts 2024, not 2023??
@megaroeny
2 жыл бұрын
Excellent video Alex! Thank you!
@nc3826
2 жыл бұрын
correction. the IRS states starting in 2023 there will be two 2 tax credits for new clean vehicles of $3,750 , not just one of $7,500, based on battery criteria....
@leecandace7590
2 жыл бұрын
thanks Alex for clarifying about the lease part. Many websites mentioned lease lenders should be able to apply tax credit to the leasing price.. it is not actually true... And Alex really explained it well.
@pete0078
2 жыл бұрын
So here’s my simple question on someone who will not qualify for credit from an income cap perspective starting 1/1/23. Can we still get the benefit if we order a mach-e or one of the cars from your list and hopefully get delivered before 12/31/22
@doomsday9973
2 жыл бұрын
Yes you can
@pete0078
Жыл бұрын
Thank you. I searched a lot and seems like there is no way I can get a mach-e. So may I please ask a follow up question here. What if I purchase a qualifying electric vehicle (mach-e in this case) after August 16, 2022 but but possession is still in 2023 as ford is showing 30-35 week delivery time
@doomsday9973
Жыл бұрын
@@pete0078 unfortunately as I understand the law if you exceed the cap you wouldn’t qualify because everything is based on date you take delivery and after Jan 1st the income caps go into effect. The Mach E is really that hard to find? Or is it just the GTs?
@nc3826
2 жыл бұрын
correction, the IRS states the tax credit for pre-owned clean vehicles (section 25E).... starts in 2023 not 2024....
@swait239
2 жыл бұрын
What cars qualify exactly?? Some Model 3’s and/or some model Y’s? Please elaborate on which trims qualify, if possible. I’m in USA.
@jeffgold5084
Жыл бұрын
Thank you for this video. I have a Tesla 2023 model three. Is there a document I should’ve received when I purchased a Tesla on June 5? Or do they send me something prior to your end for my $7500 tax credit. Thank you.
@georgem.210
2 жыл бұрын
Ok, I have a signed purchase invoice retail sales order for a 2022 Kia EV6 dated July 18th, 2022 from a dealership. We agreed on a Price, then with fees, taxes, lincense, and delivery added to the price, the retail sales order was signed. I had to put down a non refundable $1,000.00 In order to complete the deal. Your video mentions something in reference to this, making me think I "might" still be eligible for the tax credit maybe? I do not consider any opinion as professional legal advice. Thanks for replying.
@vijayjayaraman5990
Жыл бұрын
Excellent video. Precise and to the point. Great job
@davidandrews7544
2 жыл бұрын
This is an excellent breakdown in how to get a small portion of our salary back. Appreciate it!
@joeb4294
2 жыл бұрын
It still seems unclear whether crossovers will be labeled as SUVs or as cars. Is there an actual definition that draws a line for dimensions or weight?
@helloandrewc
2 жыл бұрын
I'm sure it's determined by the US EPA Fuel Economy classification. Most crossovers are in the "light truck" category.
@cube1us
2 жыл бұрын
Astute observation. One that not many people are picking up on. The way the legislation reads the IRS is supposed to create definitions which are similar to those in use by the department of energy and the EPA. However the EPA has two different definitions, one called small SUV under 6000 pounds gross vehicle weight and one called standard SUV over 6000 pounds GVW. My guess is that SUV is going to be the latter, Because I think the intent was to exclude vehicle such as those from Cadillac, the Lexus NX, and so on.
@barryw9473
2 жыл бұрын
Thanks for more info.
@pioneer7777777
2 жыл бұрын
So the way I see it, Honda's EV's, Blazer EV, and ID4 would be the best value vehicles for families come 2023 under this new set up.
@honglinghe5705
Жыл бұрын
But where ID 4 battery made is the key factor you get tax credit or not?
@desmondcheah902
Жыл бұрын
Thanks for making things so clear.. :)
@Irish_Mike_NYC
2 жыл бұрын
So the situation Ford Customers are in is order banks opened mid august for those who pushed their order meaning it was sold out so they get to order 1st then mid September order invites go out for EV reservation holders, all extended range trucks are now over $80k but you’re saying if you order & put down a deposit before dec 31, 2022, the $80k cap doesn’t apply & you would still qualify even if the truck isn’t built & you don’t take delivery until after Jan 1 2023? If so that’s great 🙏🏻
@cube1us
2 жыл бұрын
The $80,000 Doesn’t take affect until after December 31, 2022. But what matters is when you take delivery. It doesn’t matter when you ordered it or when you put down a deposit or you have a contract or anything else. The binding contract terms only apply to contracts that were in place before August 16, 2022.
@Irish_Mike_NYC
2 жыл бұрын
@@cube1us thanks! There’s so much confusing info out there, thanks for laying it out straight 👍🏼
@uwmalcolm491
Жыл бұрын
@@cube1us That's not what he says in this video between the 5 and 6 minute mark...he mentions that binding contracts made before the end of 2022 only need to meet the requirements from Aug 16-Dec 31st 2022. That would mean that purchase price cap and AGI requirements don't apply, and no battery/mineral requirements would need to be met yet I don't know where that information came from and would love to see it, as I'm looking at ordering a vehicle in the next few weeks that would be delivered in 2023.
@han605
2 жыл бұрын
Thanks for the video! Very informative.
@KalleSWBeck
2 жыл бұрын
Confusing but great changes. Bring manufacturing back here and the point of sale will help a ton of people that actually needs it.
@bradb2141
2 жыл бұрын
This bill will bring manufacturing to Canada and Mexico, not the USA! The Chevy blazer EV will qualify and Gm is not making it in the USA. It’s Mexico I believe. And not increasing the limits with inflation means in a few year No EV’s will qualify.
@ATH_Berkshire
2 жыл бұрын
@@bradb2141 Or EV’s will be developed at a lower price point as technology improves. There are a ton of ICE Toyotas sold every year for less than $50k, in 5 years lots of them may well be Plugins.
@santabarbarian5049
2 жыл бұрын
Battery composition requirements aside, is a Subaru Forester PHEV likely to be made in the US of Japan? It would be nice to have another AWD PHEV on the list.
@htn5173
Жыл бұрын
My bolt euv was bought in june 2022...will there be a tax credit for it under the new law. Or should I trade it in and get a new one with the tax credit?
@JamboneMan
2 жыл бұрын
Concerning the cap, you said "price". It is very unclear if the price cap is MSRP or price paid at dealer. Also, is not clear if the cap includes the destination/delivery fees. I am trying to ask my CPA but i haven't got ac clear answer yet. The tax form just references price also. Help please?
@txdevops
2 жыл бұрын
Awesome video and info. Thanks!
@hidros1461
Жыл бұрын
What happens if I buy a used 2020 tesla in 2022. Would I qualify for the credit?
@shelleytonycaoli5045
Жыл бұрын
Thanks for the explanation Alex!
@pete0078
Жыл бұрын
What if I purchase a qualifying electric vehicle (mustang mach-e) now, which is after August 16, 2022 but the possession is in 2023 as ford currently has 30 -35 week delivery time. My question is more from income limit perspective. I think if the delivery is before dec 31 2022 then I am fine as the income limit cap requirement kicks in 2023 but here we are looking at delivery in 2023 while I am ok to sign purchase agreement right now.
@eleazar1302
Жыл бұрын
ok so you saying now we have to wait till 2024 to use the tax credit at the point of sale??? It wont start in January 2023?
@quentinharrison6345
2 жыл бұрын
Great video! Thanks. Question you mentioned you can use this tax credit once every 3 years on used EV's but is it all EV's or just the used ones? If I buy a new EV in 2023 that qualifies and I get the credit can I use it in 2024 to get another new EV?
@aa-jj1wh
2 жыл бұрын
Thank You for the great info.
@gib1262
Жыл бұрын
Question pls, I got Tesla Y on 03/22/23 Can I apply Tex credit on 2022 or 2023? I read on the IRS that tax credit can apply in either year. I’m not sure if I understand correctly
@neemanajib
Жыл бұрын
Hi, EV buyers guide... i have a question...will tesla base model 3 qualify for tax credit??? Any respoonse is highly appreciated... 😊
@honglinghe5705
Жыл бұрын
Where Is the ID 4 2023 battery made? Could you please let me know? Thanks
@joetacchino4470
2 жыл бұрын
So when it comes to existing contracts...I have one that meets all the criteria so I feel like I am grandfathered in having a car which should be conforming. However now that there is an income cap, I would be excluded even if I bought a conforming vehicle. Should I still be grandfathered?
@kimourchi7382
Жыл бұрын
Very well explained. Will BMW X5 PHEV get full credit in 2023?
@msbgone
2 жыл бұрын
Make an 80K Model X and I am all over that! Well maybe.... My only question is why are or would all companies raise the price of the vehicle? Great review Alex!
@TheJLMDT
2 жыл бұрын
Crossing my fingers that Rivian stops raising its prices! Please keep an option below 80k
@ATH_Berkshire
2 жыл бұрын
@@TheJLMDT depends how “stripped out” the $80k model is. Would you want a say 125 mile range Rivian?
@TheJLMDT
2 жыл бұрын
@@ATH_Berkshire F No. 125 miles with no load is not usable as a pickup. With their current pricing, you can get a 320 mile range for $80k. So I'm just hoping that stays. Otherwise, the 240 mile option will have to suffice
@barryrands786
Жыл бұрын
What if dealer markup pushes the price above the limit? Or is the price cap based on MSRP?
@namkyungcho8434
2 жыл бұрын
Great summary! By the way, is a BMW X5 PHEV still going to be qualified for $7,500 tax credit in 2023 as long as it is ordered under $80,000 MSRP then?
@chrismaxny4066
Жыл бұрын
No Chevy Bolt for 2022. Will GM up the price on the Bolt in January?
@joseguadarrama255
Жыл бұрын
what is the credit on USED units. I read that the Fusion Energi is qualified up to 4k max tax credit. Along with many other models. Do you have any information on that.
@EVBuyersGuide
Жыл бұрын
We talk about the used credit in tye video, it only applies to full EVs so far
@kodoq88
2 жыл бұрын
Hi Alex and all subscribers, Do you have any information on USED ev cars restrictions? Like, does kia is eligible for used car tax credit? Thank you
@barryrands786
Жыл бұрын
Yes, Kia qualifies. North America origin does not apply to the USED EV credit.
@natehawkins2910
Жыл бұрын
Ok so, I bought a 2022 lightning platinum for Msrp at $93,680. Does it still quality because it’s bought before Jan 2023??
@zekew7546
2 жыл бұрын
Wow, normally I watch videos on KZitem car channels only once, but this $$ complexity has caused me to watch this one three times. PS niw shopping for t-shirt with saying: TIMING IN LIFE IS CRUCIAL
@stikshifter
Жыл бұрын
Can you trade in a car to lower the price of a used EV to $25k to get the $4k federal credit?
@Brian-dd2df
Жыл бұрын
Is VW going to be moving any production of the Pro trims (larger battery) of the ID4 to the US at some point?
@OmerKhan1
2 жыл бұрын
New respect for you, amazing job!
@justduitman
2 жыл бұрын
does a binding agreement Rivian that gets delivered in ‘24 qualify?
@bigsassyster
Жыл бұрын
Until January 1st, the only vehicles people can get with the Tax Credit rebate is the Nissan Leaf. Ford is sold out of their mustang mach-e and F150. Rivian won't deliver their vehicle until the end of 2023. Tesla and Chevy can be bought until January. Ridiculous.
@jianguozhu543
Жыл бұрын
great video. thank you
@HKX_ORANGECHICKEN
2 жыл бұрын
I've read that no EVs will qualify for the full 7500 credit Jan 2023... because of the requirements
@JoseDRful
Жыл бұрын
I took delivery of a tesla model 3 RWD in august 15 2022. Will my car qualify for anything in 2023?
@thebaysix
2 жыл бұрын
Excellent breakdown! It's looking like my reserved '23 VW ID.4 will qualify for the 7500 next year, pending any battery revelations which are still a mystery at this point.
@captaintomst
2 жыл бұрын
That's the problem. The Mustang Mach E qualifies unless the batteries don't. And that's a big if
@josephpryor7804
2 жыл бұрын
Assuming Alex is correct, you can establish a binding contract with your VW dealer before December 31, 2022. If you take delivery in 2023 you will be eligible for the $7500. tax credit.
@honglinghe5705
Жыл бұрын
@@josephpryor7804 binding contact is over now. They only give people several days . I didn’t see the email until I missed the time window to sign a binding contract
@tjs114
2 жыл бұрын
I've been wondering on how they are defining the price of the vehicle; I finally found it listed as (11) Manufacturer's Suggested Retail Price Limitation. A: In General- No credit shall be allowed under subsection (a) for a vehicle with a manufacturer's suggested retail price in excess of the applicable limitation. Then goes on to define the limitations as Vans, Sport Utility Vehicles and Pickup Trucks $80k and any other vehicle as $55k. So no matter what you pay, the MSRP sets the tax credit.
@Hans-gb4mv
2 жыл бұрын
And that in turn is to prevent fraud. Let's say you buy a vehicle that has a $58k MSRP while the requirement says no more than $55k. You could go to the dealer and make a deal where you agree to lower the invoiced amount to $55k so you can get the rebate and you'll pay him the missing $3k in cash. Still a nice profit for you.
@ourblissfuldreams
Жыл бұрын
So I ordered a model y that is due to be ready December 18th if I delay the pick up until the first week of January would o get thr 7500 credit?
@maximtulupnikov54
Жыл бұрын
So if you enter in a binding contract with a non-refundable deposit between 8/16 and 12/31/2022 to buy a 2023 Chevy Bolt EUV delivered in 2023, do the income limits apply, or the “old” (non-existent) income limits, and the “new” vehicle qualification rules apply in this situation? In other words, will there be a tax credit for this car, regardless of income?
@theaccentman93
Жыл бұрын
Will the Bolt EUV even have a tax credit if ordered in 2022 because of the 200k vehicle cap that doesn’t go away until Jan 1st, 2023?
@maximtulupnikov54
Жыл бұрын
@@theaccentman93 Yes, it will, since it’s made in USA, and all manufacturers caps are going away in 2023, including Tesla and GM. The purchase date has to be after 1/1/23.
@paullopresti3170
Жыл бұрын
I signed a contract, with an non-refundable deposit, on a Mini Cooper SE in March, 2022 and am taking delivery, due to lead time, in November. Do I qualify for the 7500 tax credit per the rules before August, 2022 including the North American assembly requirements?
@af2808
Жыл бұрын
What about just hybrid SUV not plug-in hybrid
@kennyhar7179
2 жыл бұрын
I know they take the lesser of the MAGI of the current tax year and the preceding tax year right? So like you said, in 2024 (for 2023 income) when I file for the return, I can use my 2022 income right?
@cube1us
2 жыл бұрын
I think it depends. Once the point of sale option comes into play then it would depend upon the previous years AGI. Until then it happens when you file your taxes and so I suspect it will depend upon the AGI for the tax year for which you are filing. But I haven’t gone back into the legislation to read that carefully to be 100% sure.
@nc3826
2 жыл бұрын
How will all PHEVs and FCEVs get the full $7500 tax credit purchased after August 16, 2022 and before January 1, 2023. If the IRS is stating that the only thing that's changed is the "final assembly requirement"? IRS states "If you purchase and take possession of a qualifying electric vehicle ( which includes a PHEV) after August 16, 2022 and before January 1, 2023, aside from the final assembly requirement, the rules in effect before the enactment of the Inflation Reduction Act for the EV credit apply" "Pre-Inflation Reduction Act of 2022 Information: The information below pre-dates the enactment of the Inflation Reduction Act of 2022 but, subject to the final assembly rule described above, remains relevant for "qualifying vehicles purchased and delivered prior to January 1, 2023". You may be eligible for a credit under Section 30D(a), if you purchased a car or truck with at least four wheels and a gross vehicle weight of less than 14,000 pounds that draws energy from a battery with at least 4 kilowatt hours and that may be recharged from an external source. You must have purchased it in or after 2010 and begun driving it in the year in which you claim the credit. The credit ranges between $2,500 and $7,500, depending on the capacity of the battery. The credit begins to phase out for a manufacturer, when that manufacturer sells 200,000 qualified vehicles."
@pitomercado1
2 жыл бұрын
I am waiting for an ID4, which is in transit on the vessel and was built in July 2022, as per the VW communications. Would this qualify us for the tax credit as it was manufactured outside the US BEFORE August 16?
@theaccentman93
Жыл бұрын
Yes, if you had a binding contract prior to August 16th.
@pioneer7777777
2 жыл бұрын
I thought the battery and mineral requirements only came in at 2024?
@fercho1467ify
2 жыл бұрын
I order an Kona electric de entry level 35000 does that one apply to the incentive
@hollypark2752
2 жыл бұрын
i dont expect tesla to change batteries to meet the tax credit requirements. tesla's demand keeps going up without tax credits for years. if other brands endup dropping Chinese batteries, what will happen is that there will be a large supply of Chinese batteries with low demand which will result in a drop in prices for Chinese batteries. a savvy manufacturer, tesla, might just buy up a bunch of these cheap Chinese batteries. this will drop the cost of this manufacturer's evs to the point that it might be cheaper than with a ev with a tax credit. i bet this will be the route tesla will go. more profits for tesla, cheaper car for the masses, without any need for a tax credit.
@TravelerAndyCc
2 жыл бұрын
Nice vid Alex, so the income limit has taken effective immediately, right? Even after agi, it’s more like a dealbreaker for many ppl.
@doomsday9973
2 жыл бұрын
Some but the vast vast amount of the population will qualify. income limit kicks in until 2023. And honestly those that make above that don’t need the credit
@EVBuyersGuide
2 жыл бұрын
No, the income limit starts Jan 2023
@ishan6771
2 жыл бұрын
Hey Alex, just to be clear no income requirements for 2022?
@TheDavidDiaz
2 жыл бұрын
So wait until 2023 to buy a Bolt EUV?!
@JuliusSDeLaCruz
2 жыл бұрын
Amazing info. QQ, so with the Mach E + Ford Options do you get to claim the $7500 tax credit (provided you owe $7500 or more in taxes)?
@doomsday9973
2 жыл бұрын
Yes Although it’s your tax liability not what you owe at tax time
@gurusarantulsi3673
Жыл бұрын
Why does Tesla model not qualify for tax credit after march 31 3023
@mickey5fl
Жыл бұрын
So, if I buy a EV in November 2022, can I still file for a tax credit on my 2022 taxes?
@shubhang93
Жыл бұрын
@EV Buyers Guide 1. Hello, I plan to purchase a PHEV eligible for $6800 in tax credits. If my tax withholding and liability for 2022 are $8000 will I get a refund of $6800 as my liability should now be reduced by $6800? Does withholding have any effect? 2. If I plan to purchase the same PHEV(assembled in NA and under 55k) in 2023 will I be getting $7500 as credit instead? Also for 2023 would I be applying for the credit in early 2024 as I hear its not PoS in 2023?
@EVBuyersGuide
Жыл бұрын
Withholding isn't a factor, it's simply tax liability. If your tax liability is enough it doesn't matter is the withholding is over or under that you still get the benefit
@shubhang93
Жыл бұрын
@@EVBuyersGuide That's the confirmation I was looking for. My TurboTax CPA gave conflicting answers and most of the info online don't seem to have proper info regarding withholding/liability. Thanks!
@js2009-g9f
Жыл бұрын
What I don’t understand is why the bill allow people with less income to buy expensive cars with the tax pairs by slightly better off middle class.
@rajeevg4683
2 жыл бұрын
Excellent video with a lot of clarifications. Looks that model 3 rwd will not qualify due to lfp batteries from China.
@alexmedina6742
Жыл бұрын
I bought my Hyundai ioniq 5 in may of 2022 do I qualify for $7500 rebate
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